The government of India is not going to ban cryptocurrencies in India, but they are trying to regulate crypto money as ‘assets’. All crypto exchanges in India reportedly come under the preview of SEBI that stands for “Securities and Exchange Board of India”.
Citizens of the country are not allowed to hold crypto money assets in private wallets or on foreign exchanges as per the cabinet note. The Indian government is looking to regulate crypto in India as ‘assets’. The watchdog of the country’s market, the Securities and Exchange Board of India, SEBI, will be at the helm.
The Finance Minister of India, Nirmala Sitharaman said this week that Bitcoin is not being recognized as the currency used for payments in India. India is working on its own digital money, central bank digital currency, shortly CBDC which is being monitored and governed by the RBI (Reserve Bank of India).
The note also highlights that citizens of India will be required to declare their cryptocurrencies to keep them on exchanges in India. And, these are no longer be allowed to keep for foreign exchanges or used in private wallets.
Moreover, India also planned to amend the PMLA (Prevention of Money Laundering Act) that holds the provisions for activity on cryptocurrencies. According to Nirmala Sitharaman, the government of India is monitoring risks related to cryptocurrencies, currently. Even the Prime Minister of India, Narendra Modi also said about the volatile nature of digital tokens, when he was called for global cooperation from all the democratic nations and regulate the sector to protect youths.
“The industry has been actively communicating with all stakeholders keeping investor protection at the forefront,” Ashish Singhal, the co-chair of the Blockchain, founder of CoinSwitch Kuber.